V.S. INDUSTRY RETURNS TO THE BLACK IN Q3 WITH RM73.4 MLN NET PROFIT

KUALA LUMPUR, June 15  -- V.S. Industry Bhd has returned to the black with a net profit of RM73.38 million in the third quarter ended April 30, 2021 (Q3) compared with a net loss of RM19.53 million in the same period a year ago, mainly attributable to higher sales orders from existing key customers and favourable product sales mix in Malaysia.

Revenue for the quarter jumped to RM1.07 billion from RM505.66 million year-on-year, largely due to higher sales orders from existing key customers despite the fact that sales generated from Malaysia in the previous corresponding period were significantly affected by the implementation of the movement control order (MCO). 

“The current challenging operating environment caused by COVID-19 pandemic, supply chain disruption, among others, is expected to prevail over the next 12 months,” the group said in a filing to Bursa Malaysia today.

It added that the group’s performance might be impacted in the fourth quarter this year as the situation remained uncertain in Malaysia with rising COVID-19 cases that resulted in the government announcing full MCO effective June 1, 2021.

On the demand outlook, orders across key customers remained healthy and robust, said V.S. Industry.

“There are also several new product models coming into production progressively over the coming quarters. Management is optimising the production output while complying with the standard operating procedures stipulated by the authorities,” it added.

The group said its new facilities sited on 413,682 square feet of land in i-Park @ Senai Airport City, Senai, Johor were on track to be completed in the next few months.

It added that production of certain new models would take place at the new facilities thereafter, along with the relocation of V.S. Industry’s headquarters to the new buildings.

“With prudent planning and careful execution by the management, the board opines that the financial performance of the group for the remaining quarter will be satisfactory,” it said. 

-- BERNAMA